BANKING INFORMATION SYSTEMS LECTURE 3

Future Trends •  The next developments in e- banking will involve new products and services that were not feasible in traditional banking models. •  This could involve enabling instant payments using mobile devices, or tools to help people manage their multi-bank financial portfolio, simultaneously.

Future Trends •  Internet banking may also become more viable as the functionality of e-banking systems grows, and customers adapt to the new ways of conducting their financial activities. •  International banking might become a reality for ordinary consumers as banking payments systems are increasingly harmonized across borders.

Future Trends •  E‐banking has the potential to provide more opportunities for banks to develop mutually satisfying, tailor made services to enrich relationship with customers. •  As technology evolves, the opportunities to extend the relationship beyond what is possible in the physical world continue to grow and will only be limited by a bank’s ability to innovate or commitment to e-banking.

Future Trends •  The use of financial decision support tools in e‐ banking is also set to grow. •  The experiences of many e‐banking users with these tools have proved unsatisfactory: offering online advice tools, people often have little idea of the benefits such tools could bring. •  Banks must promote the availability and use of such tools, and educate consumers about their benefits.

Financial Management Tools 1.  UBS Pay 2.  UBS BESR e‐list 3.  WebCalculator 4.  PayPen 5.  GIROMAT 130

UBS Pay •  This software allows entry and management of payments without connecting to the Internet. •  UBS Pay helps when entering payments abroad by enabling selection of the most cost-efficient order type. •  Payment orders are then sent collectively to UBS via UBS e‐ banking in just a fraction of the time it takes to enter them directly online. •  With a user‐friendly graphical interface, archiving and analysis functions, all of a user’s executed payments and beneficiaries’ details may be accessed at any time. •  A number of export options also simplify the transferring of data to MS Excel and MS Money.

UBS Pay

UBS BESR e‐list • UBS BESR e‐list is ideal for small and medium‐sized enterprises or individuals who just need a simple accounts receivable system with integrated invoicing functions. •  It manages the collection of receivables, within Switzerland using banking payment slips with reference number (BESR). •  The new UBS BESR e-list software replaces the old paper accounts receivable list and makes a long process automatic and quick.

WebCalculator • You can use the WebCalculator for stock exchange transactions to figure out quickly and easily the brokerage fees for transactions you are planning or you have already executed. •  Depending on the service package, it is available at a reduced price and includes the UBS investment advisory service, or may be purchased by professional investors at a price not including UBS advisory. •  In both cases your market orders can be given using UBS e-banking via the Internet or UBS e‐banking using a mobile device.

Paypen (Video) •  Reads Swiss payment slips easily and quickly. With a quick brush of the hand payment slip may be imported into the e‐banking system of the bank or payment software in seconds.

GIROMAT 130 • You can process all Swiss payment slips. •  It can read orange payment slips with the new or old dimensions. •  The special driver software means no tedious implementation of interfaces and protocols is necessary.

GIROMAT 130

More Future Trends •  Smart cards are also beginning to make their mark in the e-banking field and are expected to play greater role in the future. •  A smart card is a credit card‐sized plastic card with an embedded chip that provides power for multiple uses (I.D card, SIM cards for mobile phones, credit/debit cards, benefit claim, health cards, etc.). •  A smart cards is enhanced by PIN verification and cryptography, and the size and power of the chip determine its storage and processing capacities.

Future Vision •  Cash and checks may be eliminated in favor of the new electronic currency of “credits,” which will be much easier to transfer, maybe using mobile phones. •  Mobile technology, such as the Bluetooth proximity-based data transmission standard, may work with banking systems to enable touch points to react intelligently when a customer approaches.

Future Vision •  Developments in biometric technologies may help to deal with the most persistent security issues as well as dealing with customers’ difficulties in remembering many different login keys. •  Schneider (2005) suggest that all of the infrastructure in the world cannot succeed without innovation and the willingness to take risks. •  The ATM is an example of technologies that consumers would never have requested, but nonetheless have been keen to embrace.

Future of E-­‐banking •  The future of e‐banking seems secure due the ever increasing adoption and arrival of new technologies to address existing limitations. •  Major innovations are expected in the area of e‐banking using mobile phones, in security provision and customer services.

How to Benefit from Future ICT •  To benefit most from e-banking and related innovations, banks should : 1.  Develop a clear strategy and communicate it throughout the organization. It must be driven by the top management and should take into account the effects of e-banking 2.  Have an effective process for measuring performance of e- banking against the pre-determined criteria given in the strategic plans. 3.  Take into account the risks that e-banking will bring with it and manage these accordingly.

How to Benefit from Future ICT 4.  Undertake market research, develop systems with adequate capacity and scalability and ensure that they have adequate resources to meet their commitments and a suitable business continuity plan in case of disasters. 5.  Ensure they have adequate management information architecture to help effective and timely decision making. 6.  Develop security plans and implement them to ensure information security. This requires acquiring relevant staff expertise, building in best practice controls and testing and updating these on frequent basis.